The importance of saving money.

carzony · 24-02-2019 07:51PM #1

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

I've always been a very heavy saver and love to know I have money in the bank to fall back on. I'd say over 50% of my money probably goes into saving every payday

Are fellow Boardies saving ?

24-02-2019 07:53PM

Currently trying to renovate house and stay on top of the mortgage, so no savings for me (well, i do, but they're tied against a loan, which is the house loan/mortgage, so can't access them til that's paid off).

Hope to be able to get back to saving properly someday soon though. Maybe next year. 50% of income seems an excessive amount, to me, though.

ginandtonicsky · 24-02-2019 07:56PM

About 30% of my monthly salary goes into savings, and any work commission that comes in, aiming to buy this year so it’s a sizeable pot at this point, about 70k so far. Get a real kick out of saving and more recently, investing. Well able to spend it too though!

Mantis Toboggan · 24-02-2019 07:57PM

carzony wrote: »

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

I've always been a very heavy saver and love to know I have money in the bank to fall back on. I'd say over 50% of my money probably goes into saving every payday

Are fellow Boardies saving ?

You obviously don't rent or own a property!

Mantis Toboggan · 24-02-2019 07:59PM

OP it's great to save but remember you cannot take it with you when you die, you only live once, enjoy it.

Snow Garden · 24-02-2019 08:00PM

With a recession coming this year it would be wise to have some savings.

s7ryf3925pivug · 24-02-2019 08:04PM

Anyone in a position to do so should max out their pension contributions. This avoids paying tax on a big chunk of your income and puts your money into an investment fund. The drawback is that the money is locked in there until you retire.

It is socialism for the rich really. And it's feeding the beast that is the stock market that rules us. But it makes the most sense financially.

Nigel Fairservice · 24-02-2019 08:05PM

I try to save 25% of my monthly income. Some months are easier to do it than others. I've dipped in and out of my savings when needed but I'll always eventually replace what I took out. Saving was hard to get into at the start. In my younger days I often got paid on Friday and was broke by Monday. It has been good for my financial discipline.

My parents always told me to never borrow money for something I could reasonably save for. I've stuck with that as much as possible. I've never borrowed money for things like holidays. I have a little bit of savings now and thankfully no significant debts.

24-02-2019 08:20PM

I have found it practically impossible to save any significant amount of money in the last number of years. With ever increasing car insurance costs, health insurance costs, plus other household bills there seems to be very little disposable income left compared to 2003 - 2004 for example.

My worry is that there will be some sort of tax grab on people's savings when the Germans come looking for the €150 billion+ that we owe, we have been paying interest-only on that money for the last few years.

pleas advice · 24-02-2019 08:34PM

My 2c

Franz Von Peppercorn · 24-02-2019 08:34PM

[Deleted User] wrote: »

I have found it practically impossible to save any significant amount of money in the last number of years. With ever increasing car insurance costs, health insurance costs, plus other household bills there seems to be very little disposable income left compared to 2003 - 2004 for example.

Yeah. Foods cheaper than it was. Everything else isn’t. Not sure how the economy will cope with interest rates ever increase.

My worry is that there will be some sort of tax grab on people's savings when the Germans come looking for the €150 billion+ that we owe, we have been paying interest-only on that money for the last few years.

No we haven’t. Interest rates have been low. And those loans (hardly all from the Germans) can’t be recalled all at once.

Franz Von Peppercorn · 24-02-2019 08:35PM

25-30%. Hard to do more if you pay mortgage, bills etc.

cojomo2 · 24-02-2019 08:39PM

75% is saved...anytime I build up a nice chunk, it goes into the mortgage. Have a rainy day fund also. Hate being in debt to anyone so having a mortgage doesn't sit well with me.

devlinio · 24-02-2019 08:40PM

Mantis Toboggan wrote: »

OP it's great to save but remember you cannot take it with you when you die, you only live once, enjoy it.

But you also have to be pragmatic. There's no point enjoying it if you have no security. ie. Buy a house while your young, so you have it when you're old.

jester77 · 24-02-2019 08:42PM

I keep 6 months salary readily available in case sh#t hits the fan. Plus a few k in a current account for a spontaneous emergency. Have some long term high interest savings accounts, and investments as well.

Savings are always good, I'm always amazed at the amount of people that only start saving once they decide they want to buy a house. They end up sacrificing everything and start complaining about the system and how hard it is to get a deposit together. Start as you mean to continue, you'll never here to make any sacrifices and you'll be fine.

NIMAN · 24-02-2019 08:44PM

jester77 wrote: »

I keep 6 months salary readily available in case sh#t hits the fan. Plus a few k in a current account for a spontaneous emergency. Have some long term high interest savings accounts, and investments as well.

Savings are always good, I'm always amazed at the amount of people that only start saving once they decide they want to buy a house. They end up sacrificing everything and start complaining about the system and how hard it is to get a deposit together. Start as you mean to continue, you'll never here to make any sacrifices and you'll be fine.

For these folk, it's always the gubberments fault.

Greentopia · 24-02-2019 09:51PM

Yes I've always been a saver. Never been in debt in my life and I'm in my middle age years now. No mortgage, no credit cards or overdraft, nothing.

My parents instilled in me the value of saving at least 10% of my money every month because that's how they lived and it stuck with me. I'm very grateful to them for their good parenting skills.

I'm renovating my house right now so much of my savings is going into that but that's something I don't mind spending money on as my home is my sanctuary and gives me joy. Plus any improvements will increase the value when I eventually will sell it. I still manage to continue to save though and will refill the pot when I'm finished.

I should say I don't have any kids and don't smoke, drink very minimally, don't have an expensive lifestyle and am happy to live below my means so it's been easy for me to save. Obviously for people with families and big mortgages or high rents it's often impossible to have anything left over at the end of the month.

24-02-2019 09:58PM

When Rabo Bank opened in Ireland I started an online savings account, where a chunk of my salary would go into the account. I had kind of ignored the savings, not paid much attention to them other than for tax returns purposes. Then when Rabo pulled out of Iteland I had to close the account and found I had the makings of a lovely brand new hybrid car to replace my diesel. Insurance and road tax dropped immediately in spite of car being more powerful, and i spend €20 every six weeks on petrol. Great, now that I’m retired.

Still waters · 24-02-2019 09:59PM

It's not easy save when you're self employed, there's always something to pay or you lose out on a contract or revenue come looking for money or one of the machines breaks down.
You'd get a good run for 3 months but anything in surplus always seems to go back into the business or revenue have the hand out.
Dont get me wrong, I do complain but I wouldn't have it any other way, it's good to be my own boss and not just a worker bee working in an office, plus I have a little nixer on the side every so often that keeps me in cash so it's not all bad

rn · 24-02-2019 10:00PM

Vital to save something every month. I've always done so since started earning. It's just a pity there are such poor returns for savers. There should be some sort of SSIA type scheme for newly earning people joining the workforce to get the habit established. I believe part of reason young people spend every single penny of every paycheck is because it's losing value in the bank due to historic low interest rates.

monkeysnapper · 24-02-2019 10:05PM

Its cars I cant get my head around .

I know so many people that have no money or debt and drive brand new cars . And I'd say something if they really needed it badly .

I see really nice cars . 10 year old ones , low enough miles and going for small money . Why tie a car around your neck for face.

I couldn't give a shyte what people think of me , we have mortgage and that's well enough to be paying.

Greentopia · 24-02-2019 10:09PM

carzony wrote: »

Hi Folks,

I'm surprised by the number of people in work who are not in a position to save any money at all.

Ireland is only ranked 19th for disposable income 22% below the OECD average: http://www.finfacts.ie/Irish_finance_news/articleDetail.php?Ireland-in-19th-rank-for-disposable-income-22-below-OECD-average-749

and "the OECD said Ireland at 25% had the highest percentage of low pay in the OECD area" so no surprises very many people here can't afford to save any money at all, especially when you factor in high rents, childcare, and the general high cost of living.

I noticed when I lived in two other wealthy EU countries that a lot more people had a lot more discretionary income than here. And these were countries with high income taxes. The cost of childcare, housing and education are crippling here.

RockyMills · 24-02-2019 10:10PM

I’m on a piss poor salary but I’m currently living at home saving for a house and I don’t pay rent at the moment so I’m in a decent enough position to save. I have €10k in a savings and another savings account for my mortgage which has almost €30k in it. I’ve also been paying in to my pension for the last 18 months but this isn’t a huge amount (less than €10k).

There’s a guy I used to be very friendly with that is living and working in Dublin. I had the misfortune of joining him for a few drinks last weekend where he spoke non stop for two hours about how good his life is and how much money he’s earning (he’s 29 and earning €100k a year). I had to admit I was fairly jealous of him talking about his salary and the perks of his job but then he admitted he has no savings, he’s spending €1,600 a month on an apartment and he has no pension yet - he’s spending as he’s earning. I earn one third of what he earns but I left the pub delighted with myself knowing that I’m currently in a far better place financially than he is. I can’t stress how important having savings are. Things could go belly up at any stage for any person no matter what they work at and I’m glad I’m in a position to save what I can.

dartboardio · 24-02-2019 10:13PM

Op i presume you dont have a mortgage or children if you save over 50 percent every payday. Or a large salary.

I can save 50-60% of my wages each week but thats because I am young.. No children or responsibilities

Its easy to save when in that situation.

Mad_maxx · 24-02-2019 10:14PM

It's more important for men to save, if a couple split, the law will see the man couch surf as long as his wife or partner is looked after

Greentopia · 24-02-2019 10:15PM

jester77 wrote: »

I keep 6 months salary readily available in case sh#t hits the fan. Plus a few k in a current account for a spontaneous emergency. Have some long term high interest savings accounts, and investments as well.

Savings are always good, I'm always amazed at the amount of people that only start saving once they decide they want to buy a house. They end up sacrificing everything and start complaining about the system and how hard it is to get a deposit together. Start as you mean to continue, you'll never here to make any sacrifices and you'll be fine.

Aren't you German? that would account for your skill in saving.

Never been to a country where people are more dedicated to saving. They all seem to save at least 10% of their income. My German guy is brilliant with saving money, he always has at least 3 months savings in his bank accounts and is never in debt.

monkeysnapper · 24-02-2019 10:17PM

RockyMills wrote: »

I’m on a piss poor salary but I’m currently living at home saving for a house and I don’t pay rent at the moment so I’m in a decent enough position to save. I have €10k in a savings and another savings account for my mortgage which has almost €30k in it. I’ve also been paying in to my pension for the last 18 months but this isn’t a huge amount (less than €10k).

There’s a guy I used to be very friendly with that is living and working in Dublin. I had the misfortune of joining him for a few drinks last weekend where he spoke non stop for two hours about how good his life is and how much money he’s earning (he’s 29 and earning €100k a year). I had to admit I was fairly jealous of him talking about his salary and the perks of his job but then he admitted he has no savings, he’s spending €1,600 a month on an apartment and he has no pension yet - he’s spending as he’s earning. I earn one third of what he earns but I left the pub delighted with myself knowing that I’m currently in a far better place financially than he is. I can’t stress how important having savings are. Things could go belly up at any stage for any person no matter what they work at and I’m glad I’m in a position to save what I can.

So let me get this straight , you feel great because your living at home for free .

Classy....

24-02-2019 10:17PM

I spent a few years in the very fortunate position of living in grace and favour accommodation with other cost of living benefits, and because I don't smoke or drink it meant I could really take advantage of that opportunity to both save and sink funds into my pension. A few years and a move, a partner, and house later and I still do my best to save as much as possible and I max my pension contributions while I can because I know I may not always get the chance.

I take care of the general money situation, if the OH was in charge we'd be much less organized and would certainly be paying over the odds for things like insurance, utilities and services as he would never in a million years shop around for anything, ever. He's more than happy to abdicate all responsibility to me which is annoying, and a relief, in equal measure.

Not everyone has spare income to save or have a pension, but if you have (and have enough to enjoy life) then it's worth putting some thought into planning for the future. It's reassuring to have a cushion in case life throws something at you.

Spanish Eyes · 24-02-2019 10:18PM

Saving is something that you do for certain things you want, if you are sensible.

There is no interest on savings anymore. Bear that in mind.

I have always been a saver, but now, in my dotage am a SKIER. That means spending kids inheritance! LOL.

thomasm · 24-02-2019 10:20PM

Pension what ever you can. To get €100 in your account only costs €60. Growth is tax free as opposed to 33 to 40% non pension. Factor in annual charges, stamp duty on the way in and inflation and it difficult to make money outside of pensions

Greentopia · 24-02-2019 10:21PM

Mad_maxx wrote: »

It's more important for men to save, if a couple split, the law will see the man couch surf as long as his wife or partner is looked after

It's important for everyone to save regardless of gender. Women are not immune to accidents, bankruptcy, illness, divorce and anything else life can throw at us.

You shouldn't get married if you don't go into it with your eyes wide open and knowing what the possible legal outcome might be for you if things go belly up. No-one forces anyone to get married

The importance of saving money.

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